Major US Federal Loan Programs for Students

Federal Loans for Students Attending Colleges, Universities, and Career Schools

2018 Federal Student Loan Programs

 

  • US Federal Government offers student loans for education.

  • Federal student loans are not granted money. Student loans are borrowed funds that must be repaid with interest.

  • The federal student loans are normally made to undergraduate or graduate students who have financial need.

  • Most available federal student loans do not require a credit check and offer advantages over private student loans such as fixed interest rates.

  • The US Department of Education Office of Federal Student Aid publishes detailed information on all federal loan programs offered for education.

     

Student Loans - Direct Subsidized Loan

 

2018-2019 Direct Subsidized Loans

Disbursed  07.01.18 – 06.30.19 

How Much, At What Interest Rate, and Who Can Be Helped?

 

  • Direct Subsidized Loans can be up to $5,500 per student for a school year (see limits).

  • A fixed 5.05% Interest Rate for the life of the loan is charged for Direct Subsidized Loans first disbursed between 07.01.18 – 06.30.19.

  • Federal Direct Subsidized Loans are designed for undergraduate students who have financial need to cover the cost of their education.

  • Students getting Direct Subsidized Loans are not usually charged interest rate while attending university, college, or career school at least half-time.

If you are a member of the military, you may be eligible for special interest benefits relating to your federal student loans. Scholarships and loan repayment assistance are available from a number of sources.

Federal Student Aid Office

US Department of Education

Student Loans - Direct Unsubsidized Loan

 

2018-2019 Direct Unsubsidized Loans

Disbursed  07.01.18 – 06.30.19

How Much, At What Interest Rate, and Who Can Be Helped?

 

  • Direct Unsubsidized Loans can be up to $20,500 per student for a school year (see rules, limits).

  • A fixed 5.04% Interest Rate for Direct Unsubsidized Loans made to undergraduate students is charged for the life of the loans first disbursed between 07.01.18 – 06.30.19

  • A fixed 6.60% Interest Rate for Direct Unsubsidized Loans made to graduate students and professional degree students is charged for the life of the loans first disbursed between 07.01.18 – 06.30.19

  • Federal Direct Unsubsidized Loans are designed for undergraduate, graduate, and professional degree students but unlike getting Direct Subsidized Loans proving financial need is not required

  • Students getting Direct Unsubsidized Loans are responsible for paying an interest rate on the loan all the time, including while attending university, college, or career school.

Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive. The U.S. Department of Education (ED) is the lender and payments are owed to ED.

Federal Student Aid Office

US Department of Education

Student Loans - Direct PLUS Loan

 

2018-2019 Direct PLUS Loans

Disbursed 07.01.18 – 06.30.19

How Much, At What Interest Rate, and Who Can Be Helped?

 

  • Max. Direct PLUS Loan amount that can be disbursed is the cost of attendance minus other financial aid a student receives.

  • A fixed 7.60% Interest Rate is charged for the life of the loan first disbursed between 07.01.18 – 06.30.19 for all Direct PLUS Loans made to graduate students, professional degree students or to parents who are getting a loan to pay their dependent undergraduate child’s education.

  • Federal Direct PLUS Loans are designed for parents who borrow to help their depended child’s education and for graduate and professional degree students and proving a financial need is not required but the borrower must not have an adverse credit.

The U.S. Department of Education makes Direct PLUS Loans to eligible borrowers through schools participating in the Direct Loan Program.

Federal Student Aid Office

US Department of Education